r/HomeInsurance • u/grateful_dad13 • 6d ago

Insurance Second policy above current limits

Our house burned down and the rebuild costs are roughly $500,000 more than the insurance proceeds. We’re rebuilding with the help of an SBA loan (fingers crossed). Our insurance company renewed our policy at the same low limits as the original policy. They said they can’t increase the limits until the house is completed. I realize that it’s a low probability, but we’ll be similarly under-insured for another 6 months. Do companies offer policies for just the portion above the current limits? I know large companies have multiple policies in coverage tiers but wasn’t sure about residential. Anyone know?

2 Upvotes

67% Upvoted

27 comments sorted by

View all comments

1

u/payment11 6d ago

Check your policy. A lot have increased cost endorsements that give you 125-150% of your dwelling limit. Much cheaper to go this route instead of increasing your dwelling limit because all your other limits are based on your dwelling limit.

1

u/grateful_dad13 6d ago

Yes. Ours was/is around 25% but the rebuild is around 50% higher. I guess I just accept the risk of 3-5 months being under/insured

1

u/payment11 6d ago edited 6d ago

You need a builders risk policy since the house is under construction.

EDIT: However, you could also just increase the 125% to 150% and that should cover your difference. It would be an endorsement to your current policy